A Roth IRA is probably a good choice, if the child has any income (and it needs to be "reportable" to the IRS) and you don't have or want to put aside any sizeable amount of money. The limit in 2009-10 is $5000 in each year.

A coverdell as the author posts is an ok idea, again, it's limited to $5k, and then can only be used for education. So, a Roth IRA is better in that the money can grow tax deferred until the owner turns 70.5 and the contributions can be withdrawn tax-free anytime, and tax-free for educational purposes.

An even better idea is a 529 plan, where any individual can contribute up to $13,000 in any single allowing grow tax deferred growth, and tax-free withdrawals for education. (and, you can also "prefund" a 529 plan -- that is, put up to 5yrs of contributions into it in one year, then not contribute the next 4). So, not only are the limits higher, but again ANYONE can contribute to their limit amount ... both parents, grandparents, uncles/aunts, employers, friends.

So, here's the practicality. If you have a baby, you say "gee i should save for schooling". Baby's can't work so you can't put it in an IRA. Coverdell's are fine, for all those cash baby gifts. But, $5000 x 18yrs = 90,000. That's 2yrs of school at TODAYS dollars, if you began saving when Junior is a newborn. in 18yrs, at the rate of college costs growth and inflation, college is going to cost over $100k per year. So, practically speaking, if you max-ed out your limit in coverdell or ira's, you're not going to have saved enough for college, unless you also save in a 529 plan.